Ebay fees are high.
PayPal is owned by Ebay and the two of them goes together for most ebay sellers.
Just to show you how much they charge. Last night One of my listing a Blackberry Curve 9300 3G sold for £128 pounds. Yeah I know, it’s cheap.
I had purchased this phone for resale and not for keep. I had paid £100 pounds on the fleamarket for it. After the transaction is complete, Ebay will take 10% out of the £128 which is £12.80 pounds.
The buyer had paid with Paypal and Paypal/Ebay will take out another 3.4% transaction fee, plus £0.20 pence. But not out of the £128 selling price but this time they include the postage cost in the price because the postage cost of £4.99 is added to the sale amount thus making it a total of £133.99 that is received by PayPal. So, for them it’s considered part of the transaction.
The fee for the paypal end will be £4.56 plus the £0.20 pence for a total of $4.76.
Add the ebay plus paypal fees together and the grand total of their fees are £17.56 pounds. Quite steep.
That will leave me with a total of £11.44 profit. Not much.
So, over all Ebay/PayPal will make more money than I do and all they do is provide me with the place to sell it.
- Purchase Price; £100.00
- Sale Price; £128.00
- Ebay Fees; £ 12.80
- Postage Cost; £ 4.99
- Paypal Fees £ 4.76
- Profit; $ 11.44
I was just wondering whether PayPal charging commission on the Postal cost is right or not. I think not. Of course the sellers over inflate the postage cost by a good margin to compensate PayPal’s commission. Perhaps PayPal had employed psychologists and they’d figured out how people would react thus come to the conclusion of higher revenue for PayPal. Ebay robbery?
People behave predictably in certain circumstances. Like PayPal charging fees on Postage cost. Forcing sellers to increase their postage cost, but by that action they also provide higher revenue for PayPal. At the end the buyer pays all that cost and the seller pocketing some extra profit from the leftover postage charge.
Ebay on the other hand is trying to play post office and not allowing sellers to include any postage cost on some items and very little on some other. But when I’d called the Post Office they told me Ebay was wrong and they can’y shop any items for free, or for those low low prices ebay allows for some.
So, I have no idea where Ebay got the idea that the post office will ship those certain items for free, or for the fraction of the real postage cost????
Are they getting nuts as the result of their success? Or are they getting desperate as the result of loosing sellers?